Archive for the ‘Incline Listings’ Category

Wednesday, March 8th, 2017

Incline Village Market Report February, 2017

February continued to be strong for luxury home and condo sales in Incline Village, Nevada.

15 condos are currently pending sale, ranging from $300K- $475K, with 11 condo sales in the past month from $300K- $800K. 31 condos are actively listed from $280K- $800K, and another 7 lakefront condos are active from $1.15M to $4M.

7 homes are currently pending sale from $1M- $2.5M, and another 4 homes are pending over $2.5M to $3.75M in addition to 857 Lakeshore Blvd. known as “Lake Tahoe Castle” pending at $23.9 Million. Of note, the highest priced upper elevation pending sale is $2.65M that went into escrow last fall as a lease option. The rise in pending sales is significant, considering only 3 homes sold over $2.5 Million in the first half of the year in 2016.

Lakefront buyer activity has picked up, although inventory is extremely low, with only two “off-market” new construction lakefront homes not listed on the MLS, and one listing in the $12M range for an older lakefront home on 1 acre. There will be a new listing coming onto the market at the $11 Million price point in the coming weeks.

Showings in February were hampered by all of the snow, despite more buyer inquiries and interest. With sunshine forecasted through the next two weeks, it will allow upper elevation homes to thaw out, and beautiful blue skies to enjoy skiing and outdoor activities!

Spring is a great time to buy property in Incline Village and we are having a strong 1st quarter for sales. With more buyers entering the market as we head towards summer, competition for homes is increasing so don’t wait!

January is starting out strong for luxury home and condo sales in Incline Village. Only 3 homes sold over $2.5 Million in the first half of 2016, yet there are already 3 homes over $2.5 Million pending sale this first month of 2017, the highest priced at $3.745 Million. Showings have picked up in the first week of February with a brief break in the snowy weather, and we are seeing some early season buyer interest. Sierra Sotheby’s closed two sales over $5 Million in the last two months of 2016, including Lexi’s listing at 790 Fairview for $5.6 Million and a Lakefront listing at $9.5 Million. Look for continued interest in the luxury market into the new year!

Winter is a great time to buy property in Incline Village and we are already seeing renewed interest in the market after the quiet Holiday period. The busiest months for sales are later summer into early fall, and many Sellers are motivated in pricing through the winter months. Serious buyers have negotiating power, and can look forward to settling in to a new home in time for spring skiing!

Marketing your home with SIR’s exclusive global media partnerships provides unsurpassed exposure for your listing. Lexi collaborates with top luxury agents to target buyers in the Bay Area, across the West and in top Metro markets worldwide, providing access to her Lake Tahoe listings and our extraordinary lifestyle. Upcoming events include the SkiNE with over 200 luxury agents hosted by Sierra Sotheby’s International Realty at the Ritz Carlton, Northstar. Lexi is hosting a private networking event in conjunction with the SkiNE to showcase her listings with top Sotheby’s agents from the Western region.

Recent Testimonials

“She knows her stuff yet she is very easy to work with and very calm in her delivery which is important in negotiations. She handled a complex transaction for us and was instrumental in closing the deal.”

“We thought she took a balanced approach to the negotiation process. She does not rush you to make decisions and is empathetic, thoughtful and creative.”

Activity continues to increase over $2.5 Million, with 5 new pending sales including two new contracts- a lakefront home priced at $9.9 Million and an estate property priced over $5 Million. We are seeing a strong start to the fall selling season for the luxury market this year. There have been 7 non-lakefront residential sales over $2.5 Million to date in 2016, none over $3.95 Million yet but the lakefront home and estate home in escrow will be in the $5 Million and $9 Million range. There were 20 residential sales over $2.5 Million for all of 2015, in comparison.

Under Contract

The lakefront listing at 1635 Pine Cone Circle $9.99 Million and Estate at 828 Tyner Way $5.65 Million both went into escrow this past weekend, continuing our recent run of luxury property sales. 150 Pine Cone $3.45 Million (sold last fall $3.05 Million), 1106 Tiller $3.745 Million and 928 Lakeshore $3.495 Million (on the market only a few days) are the 3 additional pending sales in Incline Village over $2.5 Million. This has accompanied an increase in showing activity in the upper end of our market in the past several weeks.5 Pending Sales over $2.5 Million

Sales

There have been 7 sales year to date over $2.5 Million off the Lake. 600 Tyner Way just sold for $3.95 Million, newer construction upper elevation home built in 2009 with lake views over 6,000 SF. 545 Ponderosa was listed for less than a week before going into contract and selling at $3.95 Million, Ira Rodman construction with lake views, lower elevation. 996 Wedge Ct. also just sold for $2.6 Million off the Championship Golf Course. 948 Lakeshore View Ct. recently sold for $3.5 Million, well below list price of $4.2 Million- see the virtual tour. Both 62 Shoreline Circle $3.2 Million and 1132 Lakeshore $3.35 Million sold this spring in the Lakeshore area. The only other upper elevation sale so far this year was 405 Tracy Ct that sold for $2.995 Million.7 Sales over $2.5 Million

Active Listings

A total of 5 new listings have come onto the market on Lakeshore Boulevard in the past two weeks, offering great opportunities in our prime selling season. 916 Lakeshore just came onto the market this past weekend priced at $4.25M and 1100 Lakeshore was just listed priced at $4.25M, 932 Lakeshore Blvd was listed at $3.795 Million, and 928 Lakeshore Blvd at $3.495 Million (now under contract), all remodeled and in prime locations in proximity to the beach, Hyatt pier, restaurants and shopping. 830 Lakeshore Blvd. was also listed at $2.65 Million, a smaller home at just 3,088 sq ft. and 606 Lakeshore Blvd has been on the market for a year now at $3.098 Million for this 3,930 sq ft. home.

There are 19 active listings in the Lakeshore, Lakeview Subdivision and Millcreek areas, adjacent to the Lake priced over $2.5 Million, including 3 lakefront properties all priced over $10 Million.

The Incline Village luxury market over $2.5 Million has held steady this year, with an average of 5 sales per quarter in 2015. The majority of sales occurred in September, with 4 sales closing escrow in the month, and another 2 sales slated to close in October. Fall is typically the strongest season for closings, and this year may prove to follow suit, with quality construction and lake views being at the top of the list.

There were 10 sales in the first half of this year, and another 5 sales in the 3rd quarter of 2015. Five of these sales were priced over $3 Million, with one additional sale at $12 Million for a 5 acre estate at 703 Champagne on the Eastern Slope. There are 2 sales pending currently in the $3M to $4M range.

Of the 23 active listings, nearly half of these are priced over $3 Million, where as only one third of the sales this year are priced in this range. The highest priced active listing in this category, non-lakefront, is $5.9 Million. This larger inventory in the above $3 Million market gives buyers an opportunity to select from a wide range of homes and locations. Nine of these listings are located down in lakeside neighborhoods, 14 of them are higher elevation homes.

The average listing price for this range is $698 per sq ft, and sales price for the 15 homes closed is $660 per sq ft. The average size of listings and sales in this range is 5,238 sq. ft. with 5 bedrooms, 5.5 baths and 3 car garage on .63 acres. All but 12 of the 38 listings and sales have lake views, and average age of the homes is 22 years mainly remodeled or newer construction.

Sotheby’s boasts 30% of all listings and sales at this price point, with an internationally renowned marketing program and global media partners. The average time on market for listings and sales at this price point is 328 days, so it is common for homes to be active for close to a year before they sell.

In summary, buyers in this $2.5 Million and above price range will find larger, remodeled or new construction homes over 5,000 sq ft with an average of 5 bedrooms and baths, 3 car garages larger lots over 1.2 acre, mainly lake views with some limited to mountains and trees, and a few with golf course views. 80% of these homes have either been remodeled or are less than 15 years old, and the homes in older condition are almost all priced below $3 Million.

At the current pace of sales with 5 per quarter, we project 20 sales of the current 38 listings, just over half of the inventory, will sell this year. Buyers should note that quality construction and lake views are sought after commodities in our tax-friendly Incline Village, Nevada market. As we move into the fall season, buyers and sellers tend to make decisions motivated by year-end financial planning. Many sellers are motivated to move ahead of winter, and this can translate to great value for the savvy buyer.

While winter is not considered the traditional home selling season in most areas, Lake Tahoe’s seasons are what draw many buyers to the area. With recent snow and ski areas open from Christmas, retailers and lodging providers are gearing up for the busy holidays and winter weekend visitors. A new wave of interest in home buyer often occurs in winter months at Lake Tahoe, spurred by good snow conditions at the ski areas, for snowmobiling, winter festivals and family activities. These are a few of the reasons why listing a home in winter may offer Sellers a better opportunity for a strong sale.

Less Competition… There aren’t as many listings now on the market to compete with on pricing. If a Seller waits until Spring to list, there will be more listings for Buyers to choose from. Some of these may be homes that were previously listed and withdrawn or the winter that may relist for a low price and drive pricing pressure. Nationwide, there is about 20% less inventory during the winter months and inventory around the Lake drops even further as so many Sellers have the misperception that Buyers are not looking in the winter. Most Sellers don’t put their homes on the market during the last or first couple of months of the year. So, as Buyer activity continues to be strong this winter, Sellers may be at an advantage selling when most others are waiting.

Serious Buyers… A higher percentage of Buyers looking in Winter are serious about buying. The number of showings decreases in Winter, but sales do not decrease proportionately. Many Buyers who are looking in warmer months enjoy seeing homes, but do not end up buying.

Stronger Pricing… A serious Buyer will boost pricing. With less competition, by marketing a home ahead of the spring listing season, a Seller may be able to secure a higher price. While the Buyer may have had thirty homes to compare and choose from in June on the Nevada side of the Lake, there may only be ten homes that fit their criteria in January. If they are motivated to buy, and Incline Village is their desired location, there is more leverage with pricing.

Tax Planning… Some buyers may be eager to establish residency in 2015 and need to move quickly to enjoy the majority of the year in Nevada and vesting their interests here. Tax incentives for Buyers can justify paying more for a home when they are up against the clock to make their move.

January is the Biggest Transfer Month… More corporate moves happen during the month of January than at any other month of the year. Corporate transferees, who need to buy a house now, may not wait until spring.

Reinvestment Opportunities…By selling a home during the winter, a Seller may have the opportunity of selecting from a larger inventory on the buy side, if they intend to acquire another property in the spring or summer. While Winter may be the best time to garner a higher price in the sale of a home, a Seller can turn around and take advantage of the more selection and pricing pressure to get a great deal a few months down the road.

Nuisance Showings… With many Buyers “just looking” at homes and greater numbers of visitors in summer, numerous showings may just be lower level interest buyers. Showing the home is an inconvenience for Sellers and often warmer months bring showings on “short notice”. Sellers will endure many more showings in the Spring and Summer that don’t bring in any offers, which can become a burden if the home is occupied.

Search Technology… Shorter days and bad weather may seem like two barriers inhibiting Buyers from wanting to see homes, but this rationale is not as relevant as it was in the past. According to the National Association of Realtors, nine out of ten home Buyers search for homes online at their workplaces, on their smart phones, and from the comfort of their homes after dark. Many Buyers come to Tahoe looking for ski homes, and others come to get away from crowds in places like the Bay Area. Winter is an ideal time to target these Buyers who may spend more time indoors, and searching online.

Anticipated Rise in Mortgage Rates… Seasonal fluctuations and long term anticipation of rising rates offer good buying opportunities now. As the Federal Reserve retreats from its stimulus, mortgage rates won’t stay this low forever. There are a higher proportion of cash sales in the Tahoe area, but high net worth Buyers often use home equity for other investments and low borrowing rates make second home purchases very attractive.

Positive Press Driving Sales… Although home prices have not returned to their pre-recession highs, pricing has climbed in the past couple of years and buyers seeking value may not want to wait much longer as inventory continues to decline, overall.

Marketing Advantage… As there are fewer listings on the market in Winter, there are also fewer properties being advertised. Your listing will garner more exposure in media and print outlets, as fewer properties are taking up ad space.

National Data Supports Strong Winter Sales… A nationwide survey done by Redfin analyzed homes listed from March 22, 2011 through March 21, 2013, and found that those listed in winter have a 9 percentage point greater likelihood of selling, sell a week faster, and sell for 1.2 percentage points more relative to list price than homes listed in any other season.

Although a Seller may have specific reasons to wait until Spring to list, there can be many advantages not to put off the listing until the warmer months. Many buyers will understand that landscaping and lawns won’t be visible in winter, but snow covered grounds and Tahoe’s abundance of evergreens brighten up homes and offer some great photography opportunities for marketing. Many Sellers may see the advantage of targeting the winter Buyers, who bring a new opportunity in Tahoe’s prime season.

Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. Each Office Is Independently Owned and Operated. Sierra Sotheby's International Realty is a licensed brokerage in the Lake Tahoe region both in California and Nevada.